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A fixed deposit and Sukanya Samriddhi Yojana (SSY) are two popular investment tools. But if you want to know which is better for you, you need to make a detailed comparison between Sukanya Samriddhi Yojana Vs FD. The Sukanya Samriddhi Yojana is a government scheme launched for the welfare of a girl child in the family. It encourages parents or guardians of the girl child to make small savings for her higher education and marriage expenses. This scheme was launched under the ‘Beti Bachao, Beti Padhao’ initiative.


Sukanya Samriddhi Yojana enables parents/legal guardians of a girl child to open an account in her name until she turns 10. Like fixed deposits, this savings scheme offers guaranteed returns to all depositors. However, the two investment tools have multiple dissimilarities. Let us dive deeper into understanding Sukanya Samriddhi Yojana vs FD.

Difference Between Sukanya Samriddhi Yojana and Fixed Deposits

The below table points out the key differences between Sukanya Samriddhi Yojana and fixed deposit.


Fixed Deposit

Sukanya Samriddhi Yojana

Interest Rate

Interest rates depend on the tenor you choose


Eligible Age



Minimum Deposit

Differs from bank to bank


Maximum Deposit

No upper limit

₹1,50,000 p.a.

Tax Exemption

Up to ₹1,50,000



Differs from bank to bank

21 years

Premature Withdrawal

Premature withdrawal is allowed, however banks and NBFCs charge a penalty

After the age of 18 or before that, however under certain conditions only

Nomination Facility


Not available

Loan Facility


Not available

Extension of Tenor

Not available, however, you can always renew your FD


In-depth Analysis of Sukanya Samriddhi Yojana Vs FD

Let us understand the above table in depth.

  • Interest Rate:

The interest rate for Sukanya Samriddhi Yojana is decided by the Central Government every quarter. Currently, the interest rate for SSY is 7.6%. The rate of interest on FD is decided by the bank or NBFC and is revised regularly.

  • Eligibility:

Since SSY is for a girl child, parents or legal guardians can open a bank account for the baby girl right after her birth. However, ensure that the girl is below 10 years of age. Whereas, you need to be 18 or more to invest in fixed deposit schemes.

  • Minimum and Maximum Deposit:

With Sukanya Samriddhi Yojana, you can start your savings account with a minimum of ₹250, whereas the maximum investment amount is ₹1,50,000 annually. For fixed deposits, the minimum investment amount differs from bank to bank. At Bajaj Markets, you can open an FD account with an amount as low as ₹25,000.

  • Tenor:

The lock-in period for SSY is 21 years or when the girl gets married (whichever is earlier). Let us say, your girl child gets married at the age of 20, so you can break your Sukanya Samriddhi Yojana account to manage the marriage expenses. Additionally, this scheme also enables you to make partial withdrawals for the girl’s higher education once she turns 18.


In the case of fixed deposits, every bank and NBFC has a different tenor and is usually between 7 days and 10 years. At Bajaj Markets, we provide a flexible tenor ranging from 1 year to 5 years, so you can opt for the right lock-in period based on your financial goals.

Premature Withdrawal:

SSY enables you to make premature withdrawals, however only under special conditions. One such special situation could be the untimely death of the account holder. On the other hand, fixed deposits allow premature withdrawals, but you may have to pay a nominal penalty.

Tax Benefits:

SSY and FDs, both are tax-saving investments. However, you need to opt for the 5-year tax-saver FD to avail income tax exemption.

Tenor Extension:

With a Sukanya Samriddhi Yojana account, you can continue with the scheme even after the 21-year lock-in period. However, fixed deposits do not allow extension. The entire principal amount and the interest earned are withdrawn at the time of maturity. However, you can always opt for automatic FD renewal if you wish to stay invested.


The SSY vs FD comparison reveals that both have their own merits and demerits. Though Sukanya Samriddhi Yojana offers a higher interest rate, it is limited to girls. However, a fixed deposit is more than just a savings tool with a flexible tenor; it offers additional benefits like a loan against FD and a nomination facility.


At Bajaj Markets, we offer a range of fixed deposit schemes that can assist you in compounding your money. With the highest safety ratings, you can be assured that we have built a secure environment for your money to work and grow for you. So, visit our ‘Fixed Deposit’ page and invest now!

FAQs on SSY vs FD

  • ✔️Is Sukanya Samriddhi Yojana better than Fixed Deposit?

    Both Sukanya Samriddhi Yojana and fixed deposits have their own set of pros and cons. Whether you should opt for SSY or FD depends on your individual preferences, circumstances, and needs.

  • ✔️Is FD taxable?

    The interest earned on FD is taxable if it exceeds ₹10,000.

  • ✔️Is SSY tax free?

    You can avail income tax exemption on interest earned through the Sukanya Samriddhi Yojana account.

  • ✔️What is the minimum deposit amount for Sukanya Samriddhi Yojana vs fixed deposit?

    The minimum deposit amount for Sukanya Samriddhi Yojana is ₹250, and the minimum amount for FD varies from bank to bank.